What does home insurance cover?

Key Takeaways

• Home insurance includes liability coverage that protects you financially if you hurt someone else or damage their property.
• Personal property coverage in a home insurance policy includes clothes, furniture, and electronics.
• Standard home insurance covers fire, wind, and snow, but excludes damage from floods and earthquakes.

What is homeowners insurance?

Homeowners insurance is a type of protection that helps cover the cost of damage to your home and belongings if you experience a fire, storm, or theft. It can also help pay for temporary housing if your home becomes unlivable and covers legal or medical costs if someone gets hurt on your property. While it doesn't cover everything (like floods or earthquakes), home insurance is an important safety net that gives you peace of mind knowing that your protected.

What does home insurance cover?

Homeowners insurance is designed to protect you from the unexpected, from house fires to stolen electronics. Home insurance may cover liability, personal property, and more.

To help you understand what you're really paying for, here's a breakdown of the five main parts of a standard home insurance policy and what each one typically covers.

1. Dwelling coverage - Pays to repair or rebuild your home if it's damaged by covered events such as fire, wind, hail, or lightning. This coverage generally includes attached garages and decks. For example, if a fire damages your house, dwelling coverage will help pay to repair or rebuild it.
2. Other structures - Covers detached buildings on your property, such as garden sheds, hobby shops, fences, or guesthouses against damage. So, if a storm were to knock down your backyard fence, it will help pay for repairs.
3. Personal property - Protects your belongings. This includes furniture, clothing, electronics, and appliances. Coverage often applies even if items are stolen or damaged away from home. For example, if someone steals your laptop out of your car, it will help pay for a replacement.
4. Liability - Helps pay legal and medical costs if you or a household member accidentally injure someone or damage their property. For example, if a guest slips on your icy steps and gets hurt, this coverage will help cover medical and/or legal costs.
5. Additional living expenses - Covers costs associated with temporary housing, meals, and other expenses if you are unable to live in your home due to a covered claim event. For example, if your home is unlivable after a fire, this coverage will pay for a hotel and meals while you're displaced and waiting for repairs to be made so you can move back home.

How do I get homeowners insurance?

Getting homeowners insurance is a straightforward process. Here are the six basic steps to finding the right coverage for your needs.

1. Know what you want to protect. In addition to your home, think about your personal property (your belongings), as well as your liability exposure.
2. Shop around. To find the best coverage at the right price, compare quotes from different insurance companies online, over the phone, or in person with an agent. Get a quote for homeowners insurance online at Liberty Mutual.
3. Get your questions answered. When shopping around for coverage, ask questions so you understand what's specifically included in the policy.
4. Choose your policy. Select a home insurance policy that best matches your property's needs and your budget. Begin with the basics, then add extras for more protection if needed.
5. Fill in any coverage gaps. A standard home insurance policy is just that—standard. If you need additional coverage for things like flood or earthquakes, now's the time to discuss them with your agent.
6. Check your coverage limits. Make sure your home insurance limits match your needs. For example, if you need more protection for personal property or liability, talk to your agent about adjusting your policy.

Once you're satisfied with your coverage, take time to revisit your policy each year, especially at renewal. Make sure your coverage still fits your needs and be sure to update it if anything has changed.